AUDITING 1–1
Overview of the Class
Adding the Course 加簽
• Email me for authorization codes (加簽授權碼) by the end of TODAY
• sfanchen@ntu.edu.tw
• Please include (a) your name, (b) student ID, and (c) school email.
• 中文 ok.
• If you reply, please reply on the top of the email.
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Agenda
• Overview of the class (and the syllabus)
• A brief introduction to the demand for assurance and auditing services
• A quick wrap up of today’s class
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Warning: What You Should Know!
• This course will be taught in English.
• Exceptions: TW regulations that are not consistent with international standards.
• After-class Q&As can be in Mandarin Chinese.
• Talk to me whenever you have concern with the class or your grade.
• Do not wait until it is too late!
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OVERVIEW OF THE
CLASS AND
SYLLABUS
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What This Course is about
• An introduction of auditing and assurance services.
• With an emphasis on financial statement (F/S) audit.
• F/S audit can be applied to ESG (Sustainability) report assurance.
• What do CPAs do?
• What are the ethical and professional requirements for CPAs?
• How to do (F/S) audit?
• This semester (Auditing 1): concepts and theories
• Next semester (Auditing 2): financial statement audit practices
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About This Course
• Two parts:
• Lecture sessions: Monday 14:20 – 17:20
• Tutorial sessions: Wednesday 12:20 – 14:10
• Review of the lecture of the week (in Mandarin).
• Guidance on exercises.
• Review midterm exam papers.
• If you need help in English, contact the lecturer!
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About the Lecturer
• Szu-fan Chen 陳思帆
• Email: sfanchen@ntu.edu.tw
• Office: Room 804, Building II, College of Management
• Office Hour: by appointment (through email)
• My background:
• Certified Fraud Examiner (inactive).
• Industry experience (4 years in manufacturing and electronic industries).
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About the Teaching Assistant
• Name: Yu-Chen Ye 葉昱辰
• Email: r14722043@ntu.edu.tw
• Responsibilities:
• Tutorial sessions.
• Grading.
• Proctoring exams.
• Review midterm exam.
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Course Materials
• Check the syllabus.
• Textbook:
• Louwers is the required textbook.
• Download the following (the latest version):
• IAASB Handbook
• Handbook of the International Code of Ethics for Professional Accountants
• References are optional:
• Other textbooks can be found in the library.
• Materials in mandarin: follow the hyperlink in the syllabus
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Grading Scheme
• Mini-midterm exam
5%
• Midterm exam
20%
• Final exam
25%
• Quizzes
20%
• Exercises
25%
• Class participation
5%
(All in English)
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Exams
• General rules:
• Open notes: Three A4-size double-sided papers. FLAT.
• No electronic device.
• Midterm exam
• No makeup. If you miss it, the weight will be shifted to the final exam.
• Final exam
• Cumulative.
• Special considerations:
• The international standards and the Code of Ethics that we mentioned in the class will
be in the exam, even for the portions that we do not cover.
• Read them on your own!
• Finding a mistake about the concepts in the slides or in what I write during the lecture:
+1% (out of 25%) of final exam for each mistake.
• Typos do not count, but wrong paragraph# of ISAs counts.
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Mini-Midterm Exam
• No makeup.
• If you miss it, the weight will be shifted to the final exam.
• Open book!
• We will have holidays in two consecutive weeks, so the mini-midterm exam
is to help you review the concepts covered before the long break.
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Quizzes and Exercises
• Quizzes:
• Taken in the class. Will be online. Bring a laptop/tablet or a smart phone.
• Missing = zero grade. No makeup.
• Lowest two grades will be dropped.
• In other words, you may miss two quizzes without penalty.
• Exercises:
• Will be online. Some are individual and some are group assignments.
• Sign up a group with up to 5 members on NTU Cool.
• Normally one exercise every week and due by the end of Sunday.
• Note: there is an exercise this week! First exercise due date is two weeks from now!
• Lowest two grades will be dropped.
• Late submission will be discounted by 20%.
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Class Participation
• Attendance is not participation. I DO NOT TAKE ATTENDANCE.
• Minimum grade is -5%!
• If you cause great trouble to the class.
• Silence your phone during the class.
• Everyone starts at 0%.
• How to earn full mark (5%)?
• Ask or answer 2 questions (first count as 3% and second as 2%) during the lecture.
After-class questions do not count.
• Alternatively, ask or answer 3 questions (each of first two counts as 1.7% and the 3rd
as 1.6%) on the discussion board.
• Recording your participation in the lecture:
• Take a selfie with the participation poster after class of the day, and upload the picture
to the participation assignment on NTU Cool. JPG/JPEG/PNG only.
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Organize Your Learning
• Lectures:
• Introduce the key concepts of each topic.
• Explain difficult concepts of the learning materials.
• Participation:
• Prompt feedback in the class helps my teaching and your learning. You may earn
grades by asking me to slow down or to explain a concept again.
• Quizzes: a quick recall of some key concepts learned in the class.
• Reading and review after class: supplemental learning.
• Exercises (and additional practice questions):
• Enhance your learning of the materials.
• Identify and fix the blind spots of your learning.
• Tutorials: for those having difficulties understanding the class in English.
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Tentative Schedule
• Check the course syllabus.
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Course Website
• On NTU Cool.
• Syllabus, slides, discussion board, quizzes, and exercises.
• Discussion board:
• For all questions about the course materials, ask on the discussion board.
• E.g., questions about week 1 slides; questions about the exam; questions about the
exercises; etc.
• Need the notes that I wrote in the class or other materials? Just ask!
• Please only email me about other matters (for example, you have to skip the
next two classes for some reason).
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Special Notes about This Course
• The purpose of this course is to introduce you to auditing and assurance
services.
• We do not (and cannot) cover :
• All auditing and assurance standards
• All legal liabilities for auditors
• All ethical requirements for auditors
• I will teach you how to read the international standards.
• But I will not read them for you!
• Many many many (many × N) key standards will be skipped! Otherwise we will
need to double the course time!
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DEMAND FOR
ASSURANCE
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Everything is about Trust!
• Companies may say whatever they want
• But what they say may not be true!
• Or they may simply make a mistake!
• Information risk: the risk that the information is wrong
• Addressing the information risk:
• Independent 3rd party verifying the information – assurance!
• Result of assurance:
• Investors are more confident about the reliability of the information!
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But Who Pays the 3rd Party?
• Companies pay the 3rd party for assurance services!
• Conflict of interests, damaged independence...
• How can investors trust the 3rd party?
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Regulate the 3rd Party!
• Regulate what they can/cannot do
• Code of ethics
• Regulate what matters in their services and how they should maintain or
improve the quality of services
• International standards on quality management
• Regulate what they should do in the most prevalent service – the audit of
financial statements
• International standards on auditing
• Regulate less common but still important services
• International standards on sustainability assurance, etc.
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WRAPPING UP THE
CLASS
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Quiz (Not Graded)
1.
True or false: we will have two midterm exams in this semester.
2.
True or false: we will do quizzes on paper.
3.
True or false: tutorial sessions will review the lecture of the week in
English.
4.
When you have questions about an exercise problem, what should you
do?
Ask Prof. Chen by email.
B. Ask TA by email.
C. Post the question on the course discussion board.
A.
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Quiz (Not Graded)
1.
Which of the following may cause a deduction of participation grades?
Bring your smartphone to the class.
B. Ask (politely) the lecturer to go back to the last slide and explain a specific point
again.
C. Be late to the class.
D. Let your smartphone ring in the class, pick it up, and answer the phone in the
class.
E. Point out an error in the slide during the class.
A.
2.
Which of the above will increase participation marks?
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SEE YOU NEXT
WEEK!
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